Virgin Australia stated (28-Aug-2012) it is ready for the next phase of its game change programme after achieving its target of 20% of domestic revenue from the corporate and government market one year ahead of schedule, in FY2012. The airline also realigned the majority of its fleet with the introduction of domestic business class and launch of regional ATR 72 operations. Virgin Australia also established a global network through codeshare agreements and alliances, increasing interline and codeshare revenue by 158% in FY2012 compared to FY2011. Changes to fare class structure, network and product offering as well as penetration into the corporate market saw the airline achieve a 113% growth in high-yield fares. Membership in its frequent flyer programme grew from 2.5 million in FY2011 to 3.2 million in FY2012. The next steps in its game change programme include the implementation of a business efficiency project designed to deliver productivity gains of AUD400 million (USD416 million) over three years. The airline also plans to increase membership of its frequent flyer programme to 5 million by the end of FY2015. Virgin plans to increase annual interline and codeshare revenue by AUD150 million (USD156 million) by FY2015. Meanwhile the airline plans to continue to enhance customer on-ground and in-flight experience through new product and service initiatives. [more - original PR]
Virgin Australia ready for next phase of game change programme
You may also be interested in the following articles...
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround.
Gulf airlines in Australia/New Zealand: 2017 could surpass 2016's record growth
Qatar Airways' casual remark in Jan-2016 that it would launch nonstop service to Auckland has resulted in nearly two years of accelerated growth as competitors look to pre-empt Qatar. That, in turn, is driving Qatar to build its presence in Australia and New Zealand – which is disproportionately small compared to the presence of Emirates and Etihad. In Feb-2017 Qatar will finally launch nonstop service to Auckland, making that air service the world's longest flight. After the launch of flights to Australia's secondary city of Adelaide in May-2016, Qatar intends to open service to another smaller market – Canberra.
2016 was the most prominent year for Gulf airlines growing in Australia and New Zealand. Excluding Qatar's proposed Canberra service, and other services under consideration, 2017 will be the third largest year for growth, but depending on how commercial and aeropolitical matters evolve, 2017 could surpass 2016 for growth. So far, there will be more absolute growth from Qatar than Emirates in 2017, by comparison with 2016.
In Australia/NZ Gulf airlines have doubled their presence between 2012 and 2017. In Australia/New Zealand, by 2020, Gulf airlines could create the presence of two Singapore Airlines, an operation which established itself over many decades. Gulf growth has broader implications as their mostly European traffic flows challenge historical Australia-Europe hubs in Asia.